JODI MATHYPost Loss Specialist

One key way to manage your company’s experience rating is to keep medical-only claims from becoming lost time claims. Medical-only claims have the unique advantage in most states to have an experience rating adjustment (ERA) which reduces each loss by 70% for the purposes of the mod calculation.

Soon you can add three more states to the list of those implementing the ERA – Alaska (1/1/2013), Georgia (3/1/2013) and Louisiana (5/1/2013).

For those whose ratings fall within NCCI jurisdiction, there will only be three states left without the ERA – Colorado, Massachusetts, and Oregon.

The experience rating adjustment was initially devised as a way to encourage employers to report ALL losses. Before the ERA, many companies paid their small claims out of pocket. But by initiating the ERA and providing discounts for these types of claims more employers are reporting ALL claims as they typically do not have much of an impact on the mod once they are reduced.

To keep your claims medical, you should:

Immediately report to the workers compensation carrier and optimal injury management in the first 24 hours following an incident